| Copyright © 2018 Tata Consultancy Services Limited

Innovative Technologies & Business Model Innovation in Wealth ManagementTCS Presentation for SEI and it’s clients

October 1st 2018

Agenda

Blockchain

Business Models: Changing Landscape

New Asset Class: Security Tokens

Artificial Intelligence, NLP

Machine Learning

Disruptive Technologies…..for the next 2-10 years

Business Workflows are changing; Reduction of costs vs Growth in revenue

IOT

Quantum Computing

AI

DLT

CloudAdvanced AnalyticsDecentralization

TokenizationDLTSmart Contracts

Open APICo-opetitionRPA Cybersecurity

IAMDigital Assistants

Business Model Disruption in Wealth ManagementPersonalized Customer Experiences Alternative Investments - New Asset Classes

High->Low feeActive-

>Passive

Increased Regulatory

burden

New Asset classes

New platforms –

Google, Facebook, Amazon

Underinvested Deposits

Preference to Online

interactionsSwitch

advisors-easier,

cheaper

Self service

Diminishing talent pool -

advisors

Trends

Highly personalized portfolios

Low fee efficient wealth manager

Affordable to manageLower net worth individual markets

Active managed investments

Enabling

New investment strategies and asset classes

AI, DLT, Cloud,IOT, Quantum

October 1, 2018

Blockchain & Distributed Ledger Technologies

Blockchain Technologies

CryptographyDistributed Ledger Digital Tokens Smart Contracts Decentralized

Real-Time Business

Lower Transaction Costs

$Operational Efficiencies

Trustful Business Transactions

Disruptive, But Impediments…

Governance

Standards

Interoperability

CulturalAcceptance

Trading1

Data2

Risk, Capital3

Compliance4

LegTech5

Cybersecurity6

-Tokenization of Commodities-Pre-trade Analytics, Post-trade Ops

-Data Marketplaces-Market Data-Reference Data

-Regulatory Capital Mgt-Credit Risk Mgt-Enterprise Risk

-RegTech, SupTech-AML, KyC

- Derivative Contract Annexes- Event based Contracts

-Threat Analysis-IDaaS

Business Models

ASX Moving to DLT…Late 2020

ASX replacing Clearing House Electronic SubRegister system (CHESS)

Targeting 5% incremental revenue (new svcs on single source of data in real-time) or cost savings (reconciliation of processes)

Standards based DLT using Solidity like contracts; ISO 20022 standardized messages

October 1, 2018

New Asset Class: Security Tokens

Changing Landscape…New Asset Classes

• Crypto Currencies – Bitcoin, Ether

• Peer to Peer Transactions

• Payment & Money Transfers

• Under-banked and Underserved

• 2009 -current

• Initial Coin Offerings (ICOs)

• Raising Capital thru ICOs

• Not regulatory compliant

• Ethereum based ERC20 standard

• 2016 -current

• Security Tokens (STOs)

• STO1.0: Exemption based;RegD & Reg S

• STO2.0: KYC, AML, automation of Dividends, Lockouts,…

• Tokenize traditional assets

• 2017 - current

Security Tokens.. What they are

Distributed Ledger Technology (DLT) based representation of value subject to securities laws

They represent traditional securities like equity, debt, derivatives and other assets like art, real-

estate,…

They are expected to change the way we hold and transfer investments using DLT based

recording of investments

They are a mechanism for recording and trading ownership claims

Since Illiquidity discount can be a high as 30%, tokenization can unlock billions of dollars in value

in traditional illiquid assets

Security Tokens.. Their impact

Always on Market

Fractional Ownership

Rapid Settlement

Cost Reduction

Increased Liquidity

Increased Market depth

Coded Compliance

But Impediments…

Regulatory

Friction

Market Depth

Governance

The Evolving Landscape

Compliant R-Token

Platform and Exchange

Token Platform

Commercial Real Estate

October 1, 2018

Artificial Intelligence

AI – State of the Art - Benchmarking

Task Human Accuracy

Best AI Accuracy

Detecting images 95% 97%

Open Ended Qns on Images 83% 68%

Answers to questions within a document 83% 79%

Recognize Speech from an Audio call 95% 95%

Machines are good at specific well controlled tasks

Current Usage of AI in

Financial Services

• Front Office

• Chatbots, Virtual Assistants Digital Advisors

• About 80% of banks worldwide have projects in this space

• Back-office

• RPA

• 90% of banks are doing something or the other in this space

• Trading & Portfolio Management

• Only 12%

• Typically leading edge groups within banks

• RegTech & SupTech

• Gaining traction

AI Usage… Some Considerations

Vision1

Strategy,Business

Case

2

Data3

Privacy4

Operating Model

5

COE6

Leadership, Openness, Flexibility

Levers? - Cost, Competitive Advantage, new B-models

Infrastructure, Quality & Prep processes

Transparency, attributes for prediction

Central, Distributed, Hybrid

Guidance, direction, expertise; Manage change, fear of Job loss

AIReadiness

Copyright © 2018 Tata Consultancy Services Limited

Machine First™

Fostering transformation & growth of enterprises embracing Business 4.0

Machine First™It’s about augmenting human capability

Powered By Automation & AI

Machine First™ Philosophy – from a reactive approach to a pro-active service delivery model

Ente

rpri

se W

ide

Be

ne

fits

Embedded

Transformation

Leverage the

Ecosystem

Immersive

Security

Exponential

Growth

Superior

Customer

Experience

Increase

Relevance To

Digital

Machine FirstTM

Paradigm shift from the traditional delivery

model

Autonomous solutions that enables pro-active

service delivery

Machines that can Sense-Think-Act-Learn

Delivery model accommodates AI and

Cognitive engines

Enterprise which is Predictive, Preventive and

Autonomous.

Service Delivery with more expert driven and

responsive archetype

MFDM™ Framework

Secure by Design

Customers

Partners

Employees

Machines

Stakeholders

Ph

ysicalD

igital

Alerts, servicerequest, ALMartifacts

Documents,flow charts,email

Image, video

Voice support, call center, chat

IoT

UI / UX ,social media

Structu

red

SemiStru

ctured

Un

structu

red

Plu

g &

Pla

y Ec

osy

ste

m

Sense Understand Decide Respond

Dig

ital

Das

hb

oar

d

Learn (AI Collaboration Ecosystem)

Human Interface CIO

CFO

COO/CDO

CHRO

• Productivity and service levels

• Data Quality• Business value

• Cash flow• Margins / EBITDA• Risk mgmt. and

regulatory compliance

• Employee satisfaction • Training & mentoring • Recruitment

• IT TCO • Scalability • Customer experience

Fosters Business 4.0 transformation and growth of enterprises

MFDM™ Framework

Leve l 5

Autonomous

Imitates Human Intelligence

Deep Learning& AI

Leve l 4

Predictive & Preventive

Learns & Predicts

MachineLearning

Leve l 3

Heuristic & Rule based automation

Anticipates

OrchestrationAnalytics

Leve l 2

Automation of Isolated tasks

Imitates Human Action

Point Scripts/RPA

Leve l 1

Capability

Intelligence

Technology

Ad Hoc & Task based

Basic

ITSM & Monitoring Tools

Automation | Maturity Model & Transformation Journey

MFDMTM Benefit Realization - Target View

Lever Type

Reduce demand

Examples for Demand ReductionValue Technology

Data Fix, Reporting Requests, Application troubleshooting

~80-85%Orchestrated Runbook Automation

Automation

Self Heal ~30%

Self-Service ~80%Chat bots, Self Service Portals/ apps

Impart

Agility

Improved Visibility

Goal

User Experience

Access requests, passwords resets, account lock/ unlock, How to queries

End point installation issues, self heal of access issues

Automated Testing

CI/CD

Intelligent Command Center

Optimized Deliver

Operating Model

~20-25%

Upto 50%

~90%

~25-35%

Automation of Regression Testing, Performance Testing

Continuous integration, Automated Testing

Application Performance Monitoring, Unified Dashboards, Anomaly Detection

Reliability Engineering Services, Role Transformation, Product Teams, Cross Skilling

EUC automation

TCS PerfExt, TCS OSAF, JMeter, Grinder, Taurus, etc.

Build, Release, Deployment & Testing automation

APM, IT Operation Analytics

Reduced human dependency

MTTR reduction

Service Request Reduction

Improved user experience

Improved Time to Market

Deployment frequency

Triage time save

Efficiency Gain

TCS Blockchain Services

Process & Technology

3000+ processes and

800+ Bots in production

Centers of Excellence

ignio ™ , IPA - ML, NLP,

Bots/Chatbot, Cognitive

Assistant CoE

Partnership & Positioning

Strategic Alliances with all

Majors Providers

Trusted by Fortune 500

200 + customers

spanning across

geographies & industries

Expertise

~ 4000 associates driving

successful engagements

To become a partner of choice for enterprisesBy defining a Machine-First model through Robotics, Machine Learning and AI

Leadership quadrant with Analysts HfS,

Gartner , Forrester and Everest

Cognitive Automation for more than 30

engagements using ignio with 75+ in the pipeline

Focus on adopting Machine First Delivery

Model for ignio™ driven engagements

Incubating & Augmenting Knowledge through Digital Learning

Deep Domain Knowledge &

Automation Experience

TCS EIA & AI - Partner of Choice for Intelligent Automation

Thank You...